Bitcoin rose above $9,000 on Wednesday and held, marking a new milestone in the digital coin's fitful recovery from its recent swoon. The price also crossed $9,000 on Feb. 10, but quickly fell below that level. At about $9,300 in afternoon trading, bitcoin is up 9% on the day.

Critics liken technical analysis to tarot-card reading, but price charts do take on more importance with bitcoin, which can't be evaluated by looking at cash flow or assets like a stock. "Given the lack of 'fundamentals' to analyze for cryptos, most traders are solely focused on technicals," wrote Bespoke Investment Group.

And Bespoke says the $9,000 level is "bullish because it marks the break above the top of the most recent downtrend channel."

"The next upward price level to watch is $11,000, which represents the top of a more extended downtrend channel. $11,000 was also a level of support and resistance in December and again in mid-January, so we’d expect it to act as resistance if it is tested again in the near future."

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